6 Steps To Buying A Property In Lagos
Buying a property in Lagos can be quite challenging. For many who have crossed that path, they’ve had to go through series of inspections before finally making a choice. If you have plans of buying a property in Lagos, you also have to be very careful to avoid fraud. For first time buyers, this article provides a detailed guide on how to buy a property in Lagos.
STEP 1 – MAKE A CHECKLIST
Buying a property in Lagos is both a financial and investment commitment. The average house in Lagos costs at least N30million which is no small money. Hence many people are buying a property in Lagos just for investment purposes. However, if you have plans of buying a property in Lagos for residential purpose, you still have to be sure you are buying the right property that suits your need. The first thing to do before you step into the market or make that call is to have a meeting with yourself.
You have to ask yourself the essential questions like: what size of property should I buy? How much should I spend? Which locations should I consider?
Once you have asked these questions, they would form part of your checklist for your plan of buying a property in Lagos. This step is quite important because when you plan, you have a greater chance of achieving success than when you do not have a plan. We have had clients who request for a property but don’t have a specific budget or locations. Such clients who say, “any location is fine” or “send me anything you have” are always considered unserious.
If you are having trouble deciding on what kind of property to buy in Lagos, feel free to contact us for a free consultation.
What to do if you are having difficulties making a checklist on the type of property you are planning to buy in Lagos
Sometimes, you may find yourself in a situation where it is difficult to actually make a decision on what to buy. Your indecision may be as a result of you not living in Nigeria, having a large chunk of funds you just want to invest or lack of understanding of how the real estate market works. If you find yourself in such situation, here are a few things you can do to help you make a checklist:
Do Some Research Online
We live in an internet age, where almost all information you want can somehow be found on the worldwide web. For instance, if you are reading this article, it’s likely because you asked the web a question relating to the topic of this article. If you have plans of buying a property in Lagos and you have no idea what it would cost, or the best places that meet your need, then just google. There are tons of information on the internet that can help you gather all the information you need. Also our website has quite a number of listed properties you can go through. We can also help you search or research on the type of property you can buy and what location is best for you. You can book a free consultation with us if you would like to get started.
2. Ask friends and relatives
If you live outside the country or anywhere outside Lagos, then you might not truly be in touch with the realities of Lagos. For instance, you may not be aware that some areas are more prone to flood than others. You may not also be aware that some areas are more prone to crime than others. Asking friends who are resident and who move around Lagos a lot can help you understand where you should focus on.
3. Adjust to reality
Adjusting to reality means you have to be true to yourself if you have plans of buying a property in Lagos. Raising your expectations above your capacity can lead you on a wild goose chase. It can also produce undesired results. For instance if your budget can only get you a property in Victoria Island, but you insist on getting one in Ikoyi, you probably would end up not getting one in Ikoyi. If you do get one, it might not be the standard you want. At the end of the day, you just might have wasted so much precious time looking for a property that does not exist. So before you decide to step into the property market, take a look at your last bank statement and be sure to decide based on your capacity.
STEP 2 – HIRE PROFESSIONALS
The journey to buying a property in Lagos is not one you should walk through all by yourself. You should engage professionals to help you sail through that journey. You need a real estate agent, a real estate lawyer and a land surveyor. These are the essential professionals that should walk with you towards the journey to closing the deal. Real estate agents like us would help you search and find the best deals in the market. We are not only connected to a wide network of property agents, we are also always keeping our ears to the ground, listening for talks on juicy deals. When we hear about a juicy deal, we share the information to our clients and hope they take advantage of it.
Apart from the reasons adduced above, here are some other major reasons why you need to hire professionals if you have plans of buying a property in Lagos.
- To avoid risk of fraud
The property marked in Lagos State just as it is across the world is prone to fraud. A fictitious seller can market a fictitious property. If you are not careful, someone out there might just swindle you of your hard earned money. However, professionals who have eyes for details can easily smell the rat and save you from fraud.
2. To help you find the best deals
Buying a property in Lagos is a rigorous task even for professionals. It’s not just about going online to search for a listed property. It is about finding the best and pocket friendly deals. Finding the best deals involve skills such as knowledge and familiarity of the market, great negotiation skills, knowledge of valuation skills, and the ability to communicate effectively. A good estate agents finds the best deals, a great real estate lawyer ensures that the title documents are genuine and legitimate while a good land surveyor ensures that Proper coordinates are obtained and that the property is not committed.
Without working with professionals, you are prone to making mistakes people make when they buy properties in Lagos.
3. To help you acquire and perfect your title
Many times when people go for deal closing meetings, they do not know what to do or what to expect. The professional’s job is to direct the client’s mind on what to do and what to expect at the meeting. Sign here, sign here and here. That’s the professional’s job. Without a professional to guide you on what documents to expect, how to acquire and perfect title, then you might just find yourself paying for the property but not having the title documents.
STEP 3 – STEP INTO THE MARKET
This is the point where you give instructions to the estate agents with specific details on the type of property you are planning to buy in Lagos. The specific details include
a. the size of property: This could be the size of the land or structure of the building.
b. the type: This should be either residential, commercial or industrial property.
c. the location: This could be either Ikoyi, Lekki, Victoria Island, Ikeja etc.
d. the budget: This could either be a specific budget, or a budget range.
e. geographical considerations: This could either be, a quiet and peaceful environment, a busy neighbourhood etc.
After providing the specific details, the search would be very easy. Within a few days time, you are likely to begin physical inspection.
STEP 4 – INSPECT THE PROPERTY
Physical inspection is a very important step to know if the property looks good enough for you. You will have to schedule a meeting with the person in charge of the property in order to have access to the property. In carrying out physical inspection, you will be able to ask all the questions relating to your plan. Also, you will be able to mentally tick the boxes. A good thing to do is also to check more than one property in order to decide on which one best fits your need.
If you are unable to be physically present, you can ask a trusted representative to act as your proxy. You can simply request them to video call you while they go round the property so you can have a live view of the property.
STEP 5 – CONDUCT DUE DILIGENCE
Before you settle for a property and close the deal, you have to conduct due diligence. Due diligence in real estate means investigating the basic information surrounding the property. Some of the major details you ought to investigate are as follows:
- The ownership
- The physical structure
- Environmental hazards
- Crime rate
- Traffic and congestion
- Legal disputes on the property
- Loan or mortgage on the property
- Building permits of developed properties
- Outstanding bills and taxes
- New or refurbished property
In conducting due diligence, you have to know who the true owner of the property is, and also a history of all the transactions on the property. Due diligence of course is handled by professionals. Hence this is another important reason why you must hire professionals.
STEP 5 – CLOSURE
Once you are satisfied that the property meets your taste and that there are no issues with the title, then you can close the deal. But before you close the deal, ensure that you have properly negotiated the price. Closing includes paying the purchase price and other closing costs. Here are some of the fees you are likely to pay during closure.
- Purchase Price
- Agency fee
- Legal fee
- Survey Plan fee
STEP 6 – DOCUMENTATION
At the closure, you have to ensure that you execute and collect all necessary documents. Some of the documents that are essential are:
- Contract of Sale or Receipt
- Deed of Assignemnt
- All previous documents relating to the property
- Receipts of payment
- Survey Plan (Can be deferred)
If you have plans of buying a property in Lagos, then you can contact us. We would walk you through the stage from making a checklist to closure. We provide services to Nigerians living in Nigeria and Nigerians living in Diaspora.